KY: Swedish Match to Invest $41M, Expand in Owensboro, Hire 36
5 Sep, 2017
Swedish Match, a smokeless tobacco products manufacturer, will add to its Owensboro production facility with a more than $40.9 million investment and create 36 full-time jobs, Gov. Matt Bevin announced.
“In a significant contribution to Kentucky’s historic economic growth, Swedish Match has chosen to invest further in Daviess County,” Gov. Bevin said. “The advanced manufacturing capabilities of the commonwealth’s workforce, our range of industrial production equipment suppliers, and our expert service providers all work hand-in-glove with our abundant farmland and longstanding agricultural traditions. We are grateful for this investment and new job creation and we congratulate Swedish Match and the Owensboro community on their continued economic success.”
The company’s investment will cover the buildout of a 16,000-square-foot production area for ZYN, a smokeless and spitless tobacco-derived nicotine pouch. The investment will also bring a 34,000-square-foot expansion of its current facility and the purchase of new equipment. The company anticipates construction will begin in September and finish by July 2019.
“We recently decided to invest in larger scale production capacity to more fully capitalize on the progress of some of our newer smokeless products,” said Swedish Match North America Director of Operations Kristian Lindfors. “This capacity project will expand our existing facility for smokeless products in the US and will primarily cater to US demand, but could potentially address future launches in other markets.”
Swedish Match manufactures smokeless tobacco products such as moist snuff, loose leaf and plug tobacco. The company’s major brands include Red Man chewing tobacco; Longhorn, Timberwolf and Red Man moist snuff; and Day’s Work plug tobacco. The Owensboro operation, established in 1973, currently employs 342 people, including a 26-member research and development team added during a 2015 expansion.
Sen. Joe Bowen, of Owensboro, noted the company’s history in the region.
“I am pleased to hear Swedish Match’s Pinkerton Tobacco Co., a Kentucky tradition since 1973, chose to expand its Owensboro operations with this $40 million investment and over 30 new jobs,” Sen. Bowen said. “I look forward to the completion of the company’s expansion and wish them continual success.”
Rep. Robby Mills, a small business owner from Henderson, pointed to Kentucky’s business friendly policies as a driving force behind recent growth.
“Pinkerton Tobacco is a long-time staple of our local community and I am thrilled they are so confident in the pro-business environment recent Kentucky economic policy has created,” Rep. Mills said. “Job creation and business investments like this will continue to elevate the commonwealth’s economic position and put Kentuckians back to work.”
Owensboro Mayor Tom Watson welcomed the growth.
“This is the second expansion announced by Swedish Match in just three years,” Mayor Watson said. “We are thrilled to see this company continue its success right here in Owensboro!”
Daviess County Judge-Executive Al Mattingly said the project will bring additional economic growth.
“Swedish Match is an important part of our industrial community and has been for many years,” Judge-Executive Mattingly said. “Fiscal Court and I are delighted that they are making this significant expansion in Daviess County.”
To encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) in August approved the company for up to $150,000 in tax incentives through the Kentucky Enterprise Initiative Act (KEIA). KEIA allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing.
Swedish Match also can receive resources from the Kentucky Skills Network. Through the Kentucky Skills Network, companies can receive no-cost recruitment and job placement services, reduced-cost customized training and job training incentives. In fiscal year 2016, the Kentucky Skills Network provided training for nearly 95,000 Kentuckians and 5,000 companies from a variety of industry sectors.
For more information on Swedish Match, visit www.SwedishMatch.com.
A detailed community profile for Daviess County can be viewed at http://bit.ly/DaviessCoKy.
Information on Kentucky’s economic development efforts and programs is available at ThinkKentucky.com. Fans of the Cabinet for Economic Development can also join the discussion on Facebook or follow on Twitter. Watch the Cabinet’s “This is My Kentucky” video on YouTube.